While acquiring a property, it is vital to take into consideration the registration and taxation charges. tax and Property Registration are mandated under the Indian legislative act, 1899 mainly to validate the sale of the property and maintain a record of the acquisition.
What is Stamp Duty?
Stamp duty charges are the taxes levied by the govt. on the acquisition of a property. In India, the state authorities are answerable for setting the principles and guidelines and maintaining the method of collection. it’s generally fixed at a percentage rate of the transactional value. Stamp duty is an important fee to initiate transferring the ownership of a property in legal records. Under the Indian Stamps Act, 1899, the payment of stamp duty acts as proof of record in cases of property disputes.
Instrument is any document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded. it’s payable on instruments and not on transactions. If any information essential for figuring out Stamp Duty is missing within the instrument, valuation officer can concern it. Information like the area of the flat, number of the floors and year of construction must be mentioned within the agreement for quicker response.
Present Stamp Duty and Registration Charges in Telangana
Stamp duty and Registration Charges are dependent on State Governments in India. In Telangana, Due to recent changes The Registration and Stamps (R&S) Department has issued new guidelines, stamp duty and registration charges
Sale
Document | Stamp Duty | Registration Charge |
Sale deed in Gram Panchayath | 5.5% | 2.00% |
Sale deed in other areas | 5.5% | 0.5.%
|
Sale Agreement with Possession | 5.5% (adjustable) | 0.5% (Min ₹1000, Max ₹50,000) |
Sale Agreement without Possession | 0.5% (not adjustable) | 0.5% (Min ₹1000, Max ₹50,000) |
Conveyance | 5% | 0.5% |
Gift:
Document | Stamp Duty | Registration Charge |
Gift for family outside Gram
Panchayat |
2.00% | 0.5% (Min ₹2000 Max ₹25000) |
Gift for family inside Gram
Panchayat |
2.00% | 0.5% (Min ₹2000 Max ₹25000) |
Gift for non-family member
outside Gram Panchayat |
5.00% | 0.5% (Min ₹2000 Max ₹100000) |
Gift for non-family member
inside Gram Panchayat |
5.00% | 1.5% (Min ₹2000 Max ₹100000) |
Gift in favour of Govt. | 0.00% | 0.5% (Min ₹2000 Max ₹10000) |
General Power of Attorney:
Document | Stamp Duty | Registration Charge |
Authorizing family to sell, transfer or development | ₹ 1000 | 0.5% (Min ₹2000 Max ₹20000) |
Authorizing agent to sell, transfer or development | 1.00% | 0.5% (Min ₹5000 Max ₹100000) |
Purpose other than authorizing sell, transfer etc | ||
1) Authorizing more than 5 persons | ₹50 | ₹5000 |
2) Authorizing more than 5 but less than 10 persons | ₹75 | ₹5000 |
For Special Power of Attorney | ₹20 | ₹3000 |
Settlement:
Document | Stamp Duty | Registration Charge |
Settlement in favor of family member | 2.00% | 0.5% (Min ₹2000 Max ₹25000) |
Settlement in favor of non-family member | 3.50% | 0.5% (Min ₹2000 Max ₹100000) |
Settlement in favor of Govt. | 0.00% | 0.5% (Min ₹2000 Max ₹10000) |
Partition:
Document | Stamp Duty | Registration Charge |
Partition within Family | 0.5% | ₹2000 |
Partition outside family | 2.50% | 0.5% (Min ₹2000 Max ₹100000) |
Will
Document | Stamp Duty | Registration Charge |
₹0 | ₹3000 |
For more information, please visit this URL: https://registration.telangana.gov.in/readyReckoner.htm
How Are the Stamp Duty and Registration Charges Calculated
Stamp duty calculation relies on the value of the property. Each Indian state has its own criteria supported by which it’s calculated. it’s generally paid on the concept of the circle rate that’s determined by a government. taxation also varies on the premise of the kind of property i.e., residential or commercial, also as for urban and rural areas.
There are 3 ways within which you’ll pay Stamp Duty for the new property you’re near owning. you’ll consider payment through non-judicial stamp paper, e-stamping, or franking, that’s you pay the duty through some franking agency or a bank that’s authorized to easily accept such a payment. Franking does involve some extra charges supported by the state you’re purchasing the property in.
Factors that determine Stamp Duty Charges
The age of the property: As stamp tax is taken into account supported the complete worth of the property or house, the age of a selected property plays a large part in determining the fees on stamp tax. Newer properties tend to be dearer than older properties, therefore, newer properties will attract the higher charge on tax than older properties.
The age of the owner of the property: Sometimes, older individuals get a reduction on revenue enhancement in some cases. many countries offer senior citizens a subsidized stamp tax charge. this can be the explanation that the age of a property holder is vital in determining the tax charge of a specific property.
Nature of the property: Residential properties often draw lower tax charged that an ad property. Since commercial properties usually require plenty more amenities in regard to a residential property, commercial properties attract the next revenue enhancement charge.
Location of the property: Different localities attract different tax charges. for instance, a property that’s situated in an exceedingly urban zone will be charged higher on stamp tax than if the property were to be located in a rural or sub-urban area.
We calculate the cost of stamp duty and the registration fee with respect to the cost of property.
For Example: Let’s assume there is a sale of a property worth ₹1Cr.
So, the Stamp duty would be 5.5% of ₹1Cr i.e., ₹5,50,000
And the Registration fee would be, 0.5% of ₹1Cr i.e., ₹50,000
What is Registration Fee?
While Stamp Duty could be a fee that states charge supported the transaction value, the registration charge is that the cost users pay money for the service of putting a contract or a deed within the government’s records. In simple words, the government maintains a registry of documents reciprocally for a fee. So to an extent, this process lends inviolability to papers which will otherwise not be legally binding in nature.
The Indian Registration Act, 1908, talks about the way within which registration of documents should happen.
How to Pay Stamp Duty and Registration Fees
Online process:
Visit this portal https://registration.telangana.gov.in/index.htm and create profile.
Upload all the required documents and pay the fee.
Book a time slot and appointment with the sub registrar.
Visit the SRO and get the documents verified. And, present the e-KYC.
The officer will then complete the process and provide you with endorsement of the registered document.
For more information on Online payment use this URL: http://registration.telangana.gov.in/resources/downloads/userManuals/eChallan_User_Manual.pdf#:~:text=o%20Complete%20Online%20System.%20o,SBI.%20o%20Defacing%20of%20challans
Offline process:
Please visit the sub-registrar’s office and pay the fees in the form of a challan.
Frequently Asked Questions
When is Stamp Duty to be paid?
Stamp duty shall be paid before or at the time of executing a document.
Instrument (document) can be written on plain paper and stamp duty can be paid through DD / pay order issued by any nationalised bank / scheduled bank or challan within a year from the date of execution of the document and it can be got Certified by the jurisdictional District Registrar with respect to documents which are not coming for registration.
What are the consequences of non-payment of Stamp Duty?
When Stamp duty leviable on a document is not paid it cannot be accepted or received in evidence. No transaction is valid if done on the basis of instrument not duly stamped. Instruments presented to any public officer (excluding police) will be impounded. Stamp duty and penalty will be levied.
Is there a provision to get refund on penalty paid in case of impounded document?
Yes, there is a provision. Chief Controlling Revenue Authority (IGR & S) may order refund on appeal, if the penalty levied is found to be on higher side.
What are the important documents required while paying stamp duty in Hyderabad?
Demand draft/ challan of payment of complete stamp duty.
Aadhaar card.
Encumbrance (EC) certificate
Section 32A photo form of every executant and witness.
Property card of Telangana
Identity proof of all the concerned parties, i.e buyer, seller and witnesses
Address proof of the buyer(s) and the seller(s).
PAN card.
Pattadar passbook in case of agricultural land.
Documents for Power of attorney GAP/SAP
Photograph of the exterior view of the property
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